You are likely well aware that the right financial planner can assist you with saving, planning, retirement, budgeting and other critical economic aspects of your life. However, you may be unsure as to the importance of contacting a financial planner before buying a home. We have asked Warren from Wealth & Retirement Solutions on his advice for this article and he has gladly accepted. If you would like to personally ask him for a consultation, please contact him at his website found below.
What Is A Financial Planner?
A financial planner is a professional who helps families and individuals meet their financial goals whether the goals are short term or long term and is set by taking a thorough look at your financial situation. This approach looks at everything including investment analysis and current cash flow and is often the safest way in saving for retirement.
Financial planners can help their clients with financial planning for commercial or residential real estate. By utilising their knowledge and expertise, you will be sure that you will not spend more than you can afford or make other risky financial decisions. You do not want your aspirations of owning a home to turn into a financial nightmare.
So, what are the top reasons to consult with a financial planner before buying a home?
A Financial Planner Will Help You Create A Create Plan before House Hunting
One way to get the lowest interest rates on a mortgage is to have the right to excellent credit. If your credit is less than perfect, a financial planner can help you increase your score before you begin to apply for a mortgage.
For example, if you have bad credit due to having a high income to debt ratio, a financial planner will work with you to create a budget to as well as give you advice on ways to pay down your debts faster.
A Financial Planner Will Help You Figure Out How Much You Can Afford
Although your mortgage lender will allow you to borrow up to a specific amount, it is not always wise to borrow up to the maximum approved by the lender. Many financial planners do not consider this to be a smart business move.
Moving into a home and then discovering you are ‘house poor’ can make a living in your dream home unpleasant. If you are unsure how many homes you should buy, consult with a knowledgeable financial planner.
A Financial Planner Can Assist You With A Plan To Save For A Down Payment
After you have improved your credit score and you know how much you can afford to spend on a home, you will want to begin the process of saving for the down payment. Keep in mind, the more money you can put down, the less money you will have to borrow. Financial planners do not care what type of house you decide to buy. However, they will want to ensure that you buy a home that will meet the limitations of your financial life.